Can You Save Starbucks' Loyalty?
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Questions and Answers

Why are Starbucks customers becoming less loyal?

  • Because of falling perceived value (correct)
  • Because of a decrease in the quality of coffee
  • Because of rising prices of non-personalised coffee products
  • Because of a lack of personalised drink options
  • What is the recommended investment to improve customer experience according to the text?

  • $50m investment to reduce standard coffee prices by $0.05 each
  • $10m marketing investment to drive awareness of new price offer
  • $40m investment to reduce prices of non-personalised coffee products (correct)
  • $20m investment to increase personalised drink prices by $0.05 each
  • What is the forecasted net revenue growth if the recommended investment is made according to the text?

  • +$320m revenue / +$180m gross margin by year 3
  • +$280m revenue / +$160m gross margin by year 3 (correct)
  • +$200m revenue / +$100m gross margin by year 3
  • +$240m revenue / +$120m gross margin by year 3
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